While the property market took a hit in 2022 as mortgage rates started to increase faster than initially expected, it’s not all doom and gloom as we look to what Australians can expect from the property market in 2023.
Last year, the cash rate was sitting at just 0.1% at the beginning of 2022, and saw property prices fluctuate wildly, at a time when the Reserve Bank of Australia (RBA) insisted that they wouldn’t lift rates until 2024.
In 2023, experts are optimistic that interest rates will eventually plateau, meaning that the market will bounce back somewhat with some stability. However, as we’ve already seen in the first half of 2023, interest rates have continued to rise by 0.25% fairly regularly, and more rate rises are predicted.
While these rate rises will continue, they’re not expected to be as high as the market saw last year (0.5% or higher), nor are there expected to be as many.
Future interest rate hikes seem to be something that property buyers are factoring in when applying for mortgages, a sign that the market is still powering ahead. It’s widely believed that the RBA will pause before we get to a 4% cash rate, something that’s making buyers breathe a sigh of relief.
The good news is that through all this, property owners have still been able to meet their mortgage repayments.
House prices are expected to soften further in 2023, but many expect that the RBA will stop increasing before the cash rate reaches 4%. Property prices are set to fall up to 10% nationally by the end of 2023, as rising interest rates weigh on prices.
But that’s not deterring everyone – the most promising of all is that property buyers and experts alike will appreciate a return to reality and more stable market conditions.
Coposit is a revolutionary property app breaking down the deposit barrier, so that buyers can kick the first goal now and keep kicking them all the way into their home.
We fast-track ownership by allowing buyers to own an off-the-plan property for just $10,000 and pay the deposit in interest-free instalments. They can, of course, pay a bigger deposit, and their weekly repayments are reduced too.
This is why it pays to be smarter in a trickier market like 2023’s: with the first deposit and with no fees at all to pay, buyers can secure a property with Coposit, then pay down the deposit in weekly instalments, (we call these “coposits”) until it’s built.
To find out more, click here.